What was the total amount of City Wide's total liabilities in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ 16,356,455 | $ 13,026,131 | $ 9,791,091 | |||
| Accrued expenses | 1,533,826 | 889,963 | 776,610 | |||
| Current portion of operating lease liabilities | 188,516 | 182,963 | 180,007 | |||
| Deferred franchise revenue, current | 740,924 | 692,473 | 605,215 | |||
| Other deferred income | 715,920 | 358,640 | 225,115 | |||
| Total current liabilities | 19,535,641 | 15,150,170 | 11,578,038 | |||
| Long-Term Liabilities | ||||||
| Operating lease liabilities, less current portion | 976,357 | 1,164,873 | 1,347,836 | |||
| Deferred franchise revenue, net of current portion | 3,716,533 | 3,618,971 | 3,284,052 | |||
| Deferred compensation | 895,020 | 780,228 | 310,936 | |||
| Other liabilities | 276,776 | - | - | |||
| Refundable advance | 422,723 | 2,041,208 | - | |||
| Total long-term liabilities | 6,287,409 | 7,605,280 | 4,942,824 | |||
| Total liabilities | 25,823,050 | 22,755,450 | 16,520,862 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company's total liabilities in 2022 amounted to $16,520,862. This figure represents the sum of City Wide's current liabilities, which totaled $11,578,038, and long-term liabilities, which totaled $4,942,824 during that year.
Specifically, the current liabilities include accounts payable of $9,791,091, accrued expenses of $776,610, the current portion of operating lease liabilities at $180,007, deferred franchise revenue (current) of $605,215, and other deferred income of $225,115. The long-term liabilities consist of operating lease liabilities (less current portion) of $1,347,836, deferred franchise revenue (net of current portion) of $3,284,052, deferred compensation of $310,936, and other liabilities which are listed as $0.
For a prospective franchisee, understanding the liabilities of the franchisor can provide insight into the financial stability and health of the company. A high level of liabilities may indicate potential financial risk, while a lower level could suggest better financial management. It is important to consider these figures in conjunction with the company's assets and overall financial performance to gain a comprehensive understanding of its financial position.